Public Authority Liability Update - Insurers Must Pay Higher Success Fee In NIHL Claims

The meaning of disease under CPR 45

Dalton v British Telecommunications Plc [2015] EWHC 616 (QB)

The facts

In costs proceedings in relation to four separate claims brought by former employees, the court was required to determine a preliminary issue in relation to the success fee payable by the employer, BT.

Although the rules changed on 1 April 2013, success fees are still recoverable where a CFA was entered into before that date. Under the old CPR r45, where a claim is for a "disease", a success fee of 62.5% will be recoverable if the claim settles before trial. If it is not a disease, it will be classified as an injury and (if sustained on or after 1 October 2004), it will attract a success fee of only 25%. The issue in this case was whether Noise Induced Hearing Loss (NIHL) is a disease or an injury.